Content
- Service Marketing
- Differences Between Services and Goods
- The "7P" Framework in Service Marketing
- Conclusion
Service Marketing
Service marketing is a strategic activity focused on the creation, promotion, and sale of services aimed at meeting customer needs and generating profit for the company. This field encompasses various areas, including healthcare, education, hospitality, insurance, transportation, cosmetology, financial and information services, as well as leisure and entertainment.
According to data from 2019, the service sector in Russia employs 67.3% of the working-age population. This underscores the importance of service marketing as a key element of the economy.
Differences Between Services and Goods
Service marketing differs from goods marketing in several significant ways. The main feature is that services are intangible. Consumers find it challenging to assess or test a service before purchasing, making trust in the seller and the company's reputation primary factors influencing the buying decision.
Even if a client is familiar with the procedures, their duration, and order, this does not guarantee the ability to evaluate the quality of the service in advance. The outcome of work is always individual and difficult to describe quantitatively. For example, the work of a tile installer may be visible, but it does not reflect the impression of the service, including communication and cleanliness during the process.
Additionally, the production of a service is inseparable from the source—the worker who provides the service at the time and place of service. In some cases, direct involvement from the buyer may be required, such as when completing an assignment in a lesson or preparing for a medical examination.
Personnel management also plays a crucial role in service marketing. When hiring employees, it is essential to consider both professional skills and personal qualities. For experts working independently, developing a personal brand becomes an important tool for attracting clients. If you are forming a team, it is necessary to pay attention to the combination of hard and soft skills. The former relates to professional skills, such as knowledge of software or programming languages, while the latter is connected to personal qualities, such as multitasking ability or quick adaptation to a team. Research shows that success at work depends 85% on developed soft skills.
The "7P" Framework in Service Marketing
The marketing tools used in the service sector can be defined by the "7P" framework, which expands the classic "4P" formula. It includes the following elements:
- Product — the service itself, its qualities, properties, and characteristics.
- Price — pricing, discounts, subscriptions.
- Promotion — promotion, advertising, PR.
- Place — distribution, points of sale.
- People — staff.
- Process — processes, procedures, sequences of actions.
- Physical evidence — the physical environment.
These elements allow for the creation and promotion of services, taking into account the unique aspects inherent to them.
Product (Service)
The service is the primary component of marketing. It is important to continuously study and understand customer needs, conduct surveys and research to identify current preferences.
Price
When choosing a service, the customer pays attention to the price, which should reflect the costs of materials, rent, and the professionalism of the company. Proper pricing policy can help balance supply and demand.
Promotion
Various channels are used for successful service promotion: social media, targeted advertising, blogs, and more. It is essential to create a positive image of the company at every stage, from recognizing the need to making a purchase.
Distribution
Service distribution includes organizing channels of sale, payment methods, and the location where customer service takes place.
Personnel
The quality of provided services largely depends on the professionalism of the staff. It is important to attract qualified personnel and continuously train them to enhance service levels.
Process
The process of receiving a service should be comfortable for the client. Developing internal standards and scripts can help make interactions more convenient and predictable.
Physical Environment
The environment in which the client receives the service plays a significant role in their perception of quality. The design of the premises, atmosphere, and the appearance of the staff—all of these factors influence the overall impression of the service.
Conclusion
Service marketing is a complex yet important field that requires a deep understanding of customer needs and the specifics of the service itself. The application of the "7P" framework helps manage services effectively and create competitive advantages in the market.